1980 (1) TMI 3 - HC - Income Tax

Estate Duty Act 1953 - computing the value of the deceased s share in the commission business - inclusion of the value of the deceased s share in the goodwill of the commission business in the estate of the deceased

Summary

The judgment pertains to a reference under section 64(1) of the Estate Duty Act, 1953. The deceased, a member of a Hindu undivided family, had a share in a joint family business. The value of the deceased's share in the goodwill of the business was included in the estate duty computation. The accountable person challenged the constitutionality of the Act, but the court upheld the computation under section 34(1)(c) as legal and valid. The court affirmed that goodwill is an asset and ruled in favor of the revenue on both questions referred.